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Children under age 24 who are subject to the Kiddie Tax have a AMT Exemption equal to the child's earned income plus$6,950 ( $6,800 in 2011).

This is not a complete list but the following items may trigger the AMT. Itemized deductions such as taxes, interest, on home equity loans used for nonresidential purposes, medical expenses and miscellaneous investment or job expenses. Claiming a substantial number of exemptions for dependents or Certain tax-exempt interest, accelerated depreciation or incentive stock options.

The IRS’ recently-released statistics for the tax filing season. At income levels up to $100,000, fewer than 1% of taxpayers are in the AMT. For income levels between $100-200,000, this increases to 6%. After this At the $200,000 level up through $500,000, 70% of the taxpayers in this group are paying the Alternative Minimum Tax.
Unless Congress specifically addresses the issue with another AMT Patch, this

For Single or Head of Household the phase-out is $115,400 and is zeroed out at $323,000.
For Married filing jointly or Qualifying widow(er) the phase-out is $153,900 and is zeroed out at $477,100.
For Married filing separately the phase-out is $76,950 and is zeroed out at $238,550.

$51,900 for single and head of household taxpayers ($50,600 in 2012)
$80,800 for joint filers and qualifying widow(er) taxpayers ($78,750 in 2012)
$40,400 for married filing separately taxpayers ($39,375 in 2012)
There is an exemption phase-out for taxpayers with Alternative Minimum Taxable Income more than $115,400 for Single or Head of Household
$153,900 for MFJ or Widower
$76,950 for MFS.

The calculation of alternative minimum tax begins after the Adjusted Gross Income (AGI) is computed. The AMT is basically an add on to the normal income tax computation that is done. After you are done with the calculation of AGI, some of the preferential deductions (standardized or itemized) are added back into the AGI. Next a standard, flat alternative minimum tax deduction is deducted from the total. The remaining figure is known as AMT Taxable Income (AMTI). This AMTI is further taxed at different rates, instead of the current taxation rate. The output is the Tentative Minimum Tax (TMT), and in case if it exceeds the regular income tax the TMT is paid.

AMT stands for Alternative Minimum Tax. The Alternative Minimum Tax was developed in 1969 to make sure that wealthy taxpayers didn't escape paying income taxes. The tax was meant to target high-income taxpayers who may have many deductions and can sometimes avoid paying any income taxes at all.
To make sure that all taxpayers with substantial income are not able to avoid paying tax, the law limits the benefit a taxpayer can receive from favorable treatment of certain deductions and preferences.
The Alternative Minimum tax is computed on IRS Form 6251.
If the Alternative Minimum tax calculation results in a higher tax then the Regular income tax, then the difference is added to the Regular tax computation.

If the Child Tax Credit is larger than your tax liability, the unused part of the Child Tax Credit can be refundable as an additional Child Tax Credit.
The portion that is available for a refund depends on the number of children you have, your total earned income, and, sometimes, the amount of taxes you have paid over the year to Social Security and Medicare.
Use Form 8812 to claim the Additional child Tax Credit.

Simply stated, an S Corporation is taxed in the same manner as a partnership and is not taxed at the federal level. The income or losses and expenses flow through to the shareholders. A "C" Corporation pays tax on its profits and when the owner shareholders take profits from the corporation, the distributions take the form of taxable dividends. In effect, this is a double taxation of profits. There are advantages and disadvantages to both S Corporations and Regular C Corporations. Speak to your local CPA about the tax strategies of selecting the type of entity for your business.

A limited liability corporation offers limited liability to its owners, but may elect to be taxed as a partnership which passes all the income and losses through to its owners. A C corporation is taxed at the federal level and profits are either retained by the corporation or distributed to the shareholders. A profit distribution is called issuing a dividend. These profits are then taxed as income in the shareholders personal taxes. With a LLC, the owner has options of how to be taxed. The IRS allows 3 choices. A Corporation tax like a general C corporation, Partnership taxation like a S corporation or as a Sole Proprietorship.